Financial impact of Bella Vista unknown - Mayor

City councillors resume their Long Term Plan deliberations today.

City councillors are today expected to make their decisions on whether to proceed with the proposed new city centre library - the day after committing the council to an unbudgeted and unknown figure to buy out 21 Bella Vista Homes owners.

Mayor Greg Brownless says it’s too early to tell where the funding will come from.

Speaking shortly before continuing the Long Term Plan deliberation process this morning, Greg says they haven’t worked out the funding yet.

He says they’re more concerned with looking after the residents.

“Where the money comes from, we are definitely working on it. But I think it is premature to say it’s definitely going to affect any projects we are doing.”

The library is included in two versions of financial spreadsheets presented to councillors this morning by chief financial officer Pal Davidson. One is $35m for a library, the other is $25m for a library.

Councillors were this morning looking to trim another $1.1m from the budget, to look at a mean residential rate increase of 3.8 per cent – plus the glass recycling.

One way he’s suggesting bringing the overall budget down is by ceasing depreciation funding on the historic village, and marine facilities – wharves, jetties, and sea walls; but excluding the marine precinct.

When the marine facilities were re-valued four or five years ago there was a particular increase in the value of sea walls, says Paul. That has lifted sea wall depreciation costs.

He’s suggesting the council delay rate funding the depreciation for a year while they look at the best way of funding the marine activities to make them sustainable long term. This could include boat ramp fees, says Paul.

“We have got some surpluses in activities like the airport and parking activities.”

Both options still anticipate city debt growing from $330 million in the current financial year, to $1.05billion in 2027/28, year ten of the plan.

Over the same period the city council’s operating revenue is expected to grow from the current $210.3 million to $440m.

The rates requirement including from water meters, is similarly expected to grow from $153m for the 2017/18 year to $341m in year ten of the proposed plan.

The base scenario with the $25m library presented before decision making today envisages core rates increases of 6.8 per cent, 6.5 per cent and 7.7 per cent over the next three years.

The decision to introduce a commercial differential means the mean residential rate will be less than the core increases.

14 Comments

Too close to the bone?

which i assume is why you have chosen not to print my previous comment. Thanks for the confirmation, now if you’ll excuse me, i need to go and wash the stink off.

@ earlybird

Posted on 09-06-2018 14:20 | By Crash test dummies

It seems you are not well informed, the inspections were done and approved and the entire process ended up with Code of Compliance being issued. Then along can a personal grievance and took out bella Vista, the homeowners loose, the compnay goes bust and TCC ends up with the mess that they created back in their lap. The spinning starts and tries to send all blame elsewhere. That is what you are believing here. The whole mess was created and planned from within TCC and that has yet to register with most.

Just wondering

Posted on 08-06-2018 09:47 | By earlybird

how many other houses that were "inspected" by the clowns that "inspected" the Bella Vista homes are also non compliant. You have to wonder don’t you. Since I am going to be funding this monumental stuffup I want an absolute guarantee from TCC that the people, from top to bottom, who allowed this mess to happen are dismissed. Totally unacceptable that a regulatory body that is responsible for ensuring that all buildings comply with the law, manages to fail in their duty of care in such a spectacular way. We demand that accountability is followed through.

Dark ages

Posted on 08-06-2018 07:19 | By maildrop

Museums, libraries, buses, bicycles, leaky falling down homes. What century are we in?

SORRY, but do the sus !!

Posted on 08-06-2018 02:03 | By The Caveman

21 houses at an average of $650,000 each (section + build) = $14,000,000, and then ADD on the legal and other costs! $20,000,000 - yes twenty million, and the TCC insurance company will NOT - yes NOT - pay out on this one ! Watch this space............................

LETS be kind to the Council (RATEPAYERS)

Posted on 08-06-2018 01:26 | By The Caveman

20 houses at $650.000 (land plus building) = almost $15 million, add the extra costs that the Council has/will pick up - there will be NO change out of $20 MILLION once the lawyers get their bit!!! I hope for TCC ratepayers sake that the TCC has insurance, BUT somehow I suspect that the TCC will NOT get any insurance payout for this little problem.

Too early to tell

Posted on 07-06-2018 20:24 | By Centurion

where the funding will come from and we don’t know how much it will cost. Is that what you said Mr Mayor? How long would it take a staff member to look at average property values in the Lakes and come up with an upper and lower estimate? Wouldn’t one be entitled to believe that if buy-out was an option to be considered by Council, then such an estimate would be a part of the staff report? As my dear departed Aunt Fanny would say ’The mind boggles’

How hard is it..

Posted on 07-06-2018 19:07 | By Marshal

I think it goes like.. Number of house’s X cost per house = Cost to council..
And I’m a little thick... Yay.. Job done.. Cheque please.. And no $400,000 consultation fee..
Next time I won’t be doing it for free.. lol

Year 10

Posted on 07-06-2018 18:07 | By overit

Did you also read the predicted ’city debt’ for 2027/2028?? $1.05billion. OMG

unknown - Mayor

Posted on 07-06-2018 16:48 | By Crash test dummies

WOW- so they have agreed to do all of this and yet they have no idea, not a single clue of the actual cost, maybe the cost, possible the cost? Spending money that is not yours is so easy isnt it!

Avr

Posted on 07-06-2018 15:01 | By Anton

There wouldn’t be a financial impact if they have done their work properly, we just waiting for another mishap the leaky home affair didn’t teach them any.

TE DECISION WILL COST...

Posted on 07-06-2018 14:52 | By Crash test dummies

Prhaps $15 million to TCC Ratepyers, thats going to be new/more debt. Then there are all teh consultants and so on running around like headless chocks, theregoes another couple a million. The the king hit will be the legal cases against TCC (should be personally against the offenders themselves) and that could run to many millions... maybe $5-10 million. HINT FOLKS there is no money in the bank account so all of this will mean more debt.

We already have a Library!

Posted on 07-06-2018 14:11 | By Maryfaith

We do NOT need a flash new job! We can’t afford it - and the way things read above - it is obvious that because of the mistakes made by the buff head councillors, the subject of Public Liability Insurance has been precluded. As I have said before!
Ratepayers will foot the bill for tens of millions of dollars for this huge stuff up!
Any thoughts of the present ’wish list’ items coming to fruition must be ditched until such time as to be affordable ....2030?

It's such a pity that these sentiments

Posted on 07-06-2018 12:02 | By earlybird

were not displayed at the outset of this debarkle....."Speaking shortly before continuing the Long Term Plan deliberation process this morning, Greg says they haven’t worked out the funding yet.
He says they’re more concerned with looking after the residents.".